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17 Pages

Economic impact of Nigeria's proposed fiscal changes


Economic impact of Nigeria's proposed fiscal changes

Report summary

Wood Mackenzie has quantified the impact of the Petroleum Industry Bill that was put before the National Assembly in July 2012. Using the proposed upstream fiscal changes detailed in the PIB, and proposed royalties that are separate to the PIB, our analysis indicates the following: •For small E&P players in Nigeria, the proposed changes are a positive step. The availability of production allowances would provide a welcome boost for them, and profitability increases under the proposed,

What's included?

This report includes 2 file(s)

  • Economic impact of Nigeria's proposed fiscal changes PDF - 784.50 KB 17 Pages, 3 Tables, 20 Figures
  • Economic impact of Nigerias proposed fiscal changes.xls XLS - 448.00 KB

Description

This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in upstream commercial data and analysis.

  • Executive Summary
  • Introduction
  • Onshore and Shallow Water Concessions
    • JV Oil
    • Non-JV Onshore Oil
  • Gas Sector
  • What about the deepwater sector?
    • Producing PSCs and PSAs
    • Undeveloped deepwater projects
  • Impact of the changes on deepwater corporate value
  • Impact of the PIB on deepwater investments and production
  • Impact of the PIB on deepwater Government share
  • Impact on Government free cash flow from the deepwater sector
  • Economic Modelling
    • Assumptions & Definitions
    • Model Field Assumptions
  • Fiscal changes proposed in the PIB
    • Nigerian Hydrocarbon Tax
    • Companies Income Tax
    • Production allowances
    • Petroleum Host Communities Fund (PHCF)
  • Fiscal changes outwith the PIB
    • Royalties
    • Production Sharing Contracts (PSCs)

In this report there are 23 tables or charts, including:

  • Executive Summary
  • Introduction
  • Onshore and Shallow Water Concessions
    • PIB impact on a new onshore field in a JV
    • PIB impact on a new shallow water field in a JV
    • Gov. Share in a new onshore JV oil field
    • Gov. Share in a new shallow water JV oil field
    • PIB impact on new onshore fields not in a JV with NNPC
  • Gas Sector
    • Comparison of NPV10 and IRR for a 300 bcf onshore dry gas field across selected regimes
    • NPV10 of model onshore gas fields in a JV with NNPC
    • NPV10 of model shallow water gas fields in a JV with NNPC
    • Gov. Share in a new onshore JV gas field
  • What about the deepwater sector?
    • PIB Impact on remaining value of producing deepwater PSCs & PSAs
    • Indicative impact on NPV10 of undeveloped deepwater projects
    • Indicative impact on rates of return for undeveloped deepwater projects*
  • Impact of the changes on deepwater corporate value
    • Deepwater projects sanctioned in Sub-Sahara Africa in the last five years
    • PIB impact on RemPV10 of deepwater players using a 15% hurdle rate for new projects*
  • Impact of the PIB on deepwater investments and production
    • PIB Impact on deepwater investments and liquids production using a 15% hurdle rate for new projects
  • Impact of the PIB on deepwater Government share
    • Rem. Gov. Share in producing deepwater fields
    • Gov. Share in undeveloped deepwater fields
    • International comparison of Government Share (NPV10) under deepwater fiscal regimes*
  • Impact on Government free cash flow from the deepwater sector
    • Government free cash flow from deepwater, excluding future projects with IRR <15%
  • Economic Modelling
    • Economic impact of Nigeria's proposed fiscal changes: Table 2
  • Fiscal changes proposed in the PIB
    • Summary of profits-based tax changes
  • Fiscal changes outwith the PIB
    • Proposed royalty rates for oil
    • Proposed royalty rates for gas
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